Thursday, February 17, 2011

Course operators finding new ways to bring in the green amid recession - Business First of Columbus:

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That somber news is part of an overalll slide in activity at golf courses which havebeen impacted, like most by the recession. Priceyy country clubs especially are takinfg a hit and are rethinking the way they do busineszs in a searchfor members. According to the , a groupo of 7,000 managers of membership average membership across all clubs was 774last year, down from 847 in 2004. And, just 26 percengt of all clubs, which includes yachtingg clubs, are at full membership capacity. Publicc courses aren’t immune from challenge s eitherthese days.
Wes Widdows, generapl manager of the , a public course, said the coursw does well duringtournament week, but noted fewet companies have booked outings this year. “With the economicc climate, you’re just not going to see as And individuals, not just corporations, are watchinfg their money as well, he said. Since the economy has gone intothe tank, Widdowas made changes. He moved his pro shop closer to the coursr and converted that spacd into a restaurant callee The Pub atthe Club, which opened May 1. There are about 700 homed around theGolf Club, and whilew “not everyone golfs, everyone eats and drinks,” Widdows said.
The it’s hoped, will be a complementary streamof revenue. The recently reported that nearluy 60 percent of private clubs nationallu are operating ata loss. The organizationj also said the number of people playing golf has declined or stayedr the same every yearsincer 2000. So, operators on the privatde side of the businessare adjusting, just like Widdowse has. Some have taken to marking down once heft yinitiation fees, according to Golf Digest, but other steps, such as trial memberships, new membership categoriee and relaxing traditional such as mandatory minimum spending, may Michael Graney, general manager of the , said most club s won’t be able to depend on significan t initiation income streams in the future.
A full golf membershi p – with access to the course, clubhouse, fitness pool, tennis courts and dining costs $5,400 a year, plus $800 each year to be spenrt on foodand drinks. “The supply-and-demand ratiol in golf and specifically private golfhas changed,” he said. “Clubw will now begin to rethinkk how they will address capital repairs and improvements that they have historically funded frominitiationb income.” He said expensive equipment and amenit additions will have to be addresseed out of the operationap budgets of clubs. “People today are less likelt to commit to four hourz on the golf course becauser lives have becomeso busy,” Graney said.
Youngerf golfers are a growth sector, he and most clubs, including the Country Club at have discount programs for families underage 35. Bill general manager of in a private club which offers an Arnold Palmertdesigned course, has takenn several cost-cutting steps to weather the recession, such as reducingh staff and renegotiating some service contracts. “We’r e cutting the fat,” he said. Tartan has sevenj membership classifications tochoose from, such as a juniofr executive membership.
Regardless of what’s going on in the the week of the Memorial Tournamenft is a big deal for golf courses on the north sideof town, whether public or The event draws thousands of peopler to the Dublin area during its run. According to the , the tournament generated 4,200 room nights last year.

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